For the Multiple Regression Model $= 75 + 25 x _ { 1 } - 15 x _ { 2 } + 10 x _ { 3 }$

question 16

Multiple Choice

For the multiple regression model $= 75 + 25 x _ { 1 } - 15 x _ { 2 } + 10 x _ { 3 }$ , if $x _ { 2 }$ were to increase by 5, holding $x _ { 1 }$ and $X _ { 3 }$ constant, the value of y would:

• A) increase by 5.
• B) increase by 75.
• C) decrease on average by 5.
• D) decrease on average by 75.

---

Definitions:

Direct Labor Cost

The sum of all expenses associated with labor that is directly used in the creation of products or services.

Labor Efficiency Variance

A measure of the difference between the actual hours worked and the standard hours expected, to produce a certain level of output.

Labor Rate Variance

The difference between the actual labor costs and the budgeted or standard labor costs, often due to differences in wage rates or work hours.

Standard Cost System

An accounting system that assigns predetermined costs to products and services, which are then compared to actual costs for variance analysis.